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U.S. rail strike averted, but labor deal faces tough union votes

President Joe Biden's administration secured a tentative deal on Thursday to avert a railway strike that could have wreaked havoc on the U.S

Reuters

If [unions] accept the deal that was announced at about 5 a.m. (0900 GMT), workers whose pay had been frozen would win double-digit increases and would be allowed to seek certain types of medical care without fear of being punished, union leaders said. The agreement also includes an immediate 14.1% wage rise, the railroads said.

A rail shutdown could have frozen almost 30% of U.S. cargo shipments by weight, stoked inflation, cost the American economy as much as $2 billion per day and unleashed a cascade of transport woes affecting U.S. energy, agriculture, manufacturing, healthcare and retail sectors. […]

The railroad industry slashed almost 30% of its workforce over the past six years, cutting pay and other costs as companies increased profits, stock buybacks and dividends for investors.

Profits at BNSF, owned by billionaire Warren Buffett’s Berkshire Hathaway (BRKa.N), rose 9.8% in the quarter ending June 30 to $1.66 billion. […]

Thursday’s deal follows some earlier recommendations of the president’s emergency mediators. It includes a 24% percent wage increase over a five-year period from 2020 through 2024 as well$1,000 lump sum payments in each of the next five years.

Some 22,000 union workers at 29 West Coast ports that handle almost 40% of U.S. imports are also [still] in high-stakes labor contract negotiations.

15 Sep 22